Synthetix Founder: DeFi Projects Face Regulatory Risk in the US
Kain Warwick, the founder of Synthetix (SNX), believes that decentralized finance (DeFi) projects cannot avoid regulatory risk in the United States. In July, Warwick established Infinex, a decentralized perpetual exchange that utilizes Synthetix for liquidity.
While acknowledging the regulatory risk associated with the project, Warwick argues that some US regulators are disregarding the advantages of transparent and open infrastructure in financial markets. He believes that US regulatory agencies have lost sight of their mandate and that it will be up to the courts to resolve these issues.
Warwick built Infinex because he noticed an inefficiency in the Synthetix ecosystem. He highlights the power of DeFi, stating that it allows for disruption both within and outside incumbents, which is impossible in traditional finance.
Hot Take: US Courts Will Determine Crypto Regulation Battles
Kain Warwick, founder of Synthetix, suggests that decentralized finance (DeFi) projects cannot escape regulatory risk in the US. According to Warwick, US regulators fail to recognize the benefits of transparent and open infrastructure in financial markets. He believes that these regulators have lost sight of their mandate and expects that the courts will ultimately resolve these issues. Warwick built Infinex to address inefficiencies in the Synthetix ecosystem and emphasizes the disruptive power of DeFi. He highlights how DeFi allows for innovation from both within and outside existing financial systems, which is not possible in traditional finance.
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